AndersElite, Eden Brown, Hays and other recruiters supplying to the construction industry are under investigation by the Office of Fair Trading for allegations of anti-competitive behaviour. US-based CDI Corp, Anders’ parent company, said in its second-quarter results statement on 27 July: “It is likely that the OFT will ultimately impose a fine on Anders. However, it is too early in the process to determine with reliability the amount or materiality of the fine.” Hays’ statement the next day confirmed it was also one of the firms being investigated. However, finance director Paul Venables said the impact would be slight. Anders said the firms involved are alleged to have agreed to “minimum fees in their contracts with UK intermediate recruitment companies. They have also declined to work with one particular UK intermediary recruitment firm.” Lawyers and other sources say this is most likely to be a reference to fees these companies receive for staff supplied to managed service providers. Eden Brown has said it is “complying fully” with the investigation, but declined further comment. The number, or identity, of the other firms involved is not known. OFT’s investigation began in June. Companies can be fined up to 10% of their worldwide annual turnover for anti-competitive behaviour, although in practice the penalty is likely to be much less. Kevin Barrow, partner at Tarlo Lyons, said: “Competing firms have to be very careful in this area. It’s a relatively serious offence.” A spokesman for the OFT said: “The OFT has investigated several businesses as a result of a Competition Act investigation into allegations of various forms of anti-competitive behaviour in recruitment services for the construction industry. It includes price-fixing and a collective boycott of a competitor. The OFT will not be in position to decide if the law has been breached until all the facts are available.” A spokesman for Anders said it had nothing to add to CDI’s statement. OFT investigations typically take several months. The Recruitment and Employment Confederation (REC) said: “The REC has written to member agencies that we are aware are subject to this investigation. We may instigate our Complaints and Disciplinary Procedure if there is evidence our Code of Professional Practice has been breached.